Property Not Covered

There is no coverage for the following property:

1. Contraband

Property that is illegal to possess is not covered. Property that is legal to possess but that is being used as part of an illegal trade or that is being transported illegally is also not covered.

2. Displayed in Show Windows or Showcases

Example: Jeremy’s Jewels is located on the second floor of the Mercantile Plaza. Mercantile Plaza has four first floor display windows, and Jeremy’s Jewels placed inventory in one of those windows. A tornado rips through town, and the windows were damaged. Some of Jeremy’s inventory was lost. The description of Jeremy’s Jewels on the schedule of coverages listed only its second-floor premises. Because the window was not on that premises, the inventory lost from the show window is not covered.

Note: Property that is in show windows and showcases at the named insured’s scheduled premises is covered. Only such property on other premises is excluded.

3. Property at Exhibition

Property that is at exhibitions that public authorities or trade associations promote or financially assist is not covered.

4. Property Excluded

The Optional Coverages section of the schedule of coverages contains an item called Property Excluded. When the box for that item is checked, the property described in that item is excluded.

5. Property Sent C.O.D. (Cash on Delivery)

When the recipient of a C.O.D. sent parcel is permitted to open and examine the property before accepting its delivery, any loss or damage to that property is not covered.

6. Sold Property

Property that has been sold is no longer covered once it has left either the named insured's custody or the custody of a carrier for hire that is delivering that property on the named insured's behalf. Sold property includes property that has been sold on an installment sales plan.

7. Watch Dealers Warehouse and Storage Property

Watch dealers property that is in any type of storage facility or warehouse is not covered unless that facility or warehouse is described on the schedule of coverages.

8. Worn Property

Property that is being worn by named insured or others is not covered. The one exception is for watches that are being worn as part of their being serviced.

Note: While Property Covered appears to be broad and comprehensive, a careful review of Property Not Covered reveals several restrictions, limitations, and details that the insurance agent must review carefully and discuss with the named insured. In most cases, the named insured is the only party that knows the details of its business well enough to address these issues and communicate them effectively.>